Exhibit 99.1
FOR IMMEDIATE RELEASE
LANCASTER, California,August 16, 2004 – Rexhall Industries, Inc. (NASDAQ: REXL) today reported its financial results for its second quarter ended June 30, 2004. Net revenues for the second quarter decreased 48% to
$5,031,000 from $9,642,000 for the second quarter of 2003. Net revenues for the first six months of 2004 decreased57% to $9,810,000 from $22,588,000 for the same period in 2003. Gross profit for the second quarter was $438,000 versus $1,259,000 for the second quarter of 2003. For the first six months of 2004, gross profit was $930,000 versus $2,861,000 for the same period last year, which is a 68% decrease. Net loss for the second quarter was $863,000 or $.15 per diluted share, compared to a net loss of $282,000 or $.05 per diluted share for the second quarter of 2003. Net loss for the first six months of 2004 was $1,292,000, or $0.22 per diluted share, compared to a net loss of $338,000 or $0.06 per diluted share for the first six months of 2003.
Commenting on the second quarter, William Rex, Rexhall’s President and CEO said: “Although the second quarter was disappointing and discouraging, Rexhall is “’down but not out’.” In the last year we have watched our sales dwindle while our dealers sold off their inventory without replacing it, thereby voiding any exclusivity in their dealer agreements. Though this has been painful, it now gives us the opportunity to establish multiple dealers in large territories.”
Continuing, Mr. Rex said, “In July, we hired a seasoned veteran as our new General Sales Manager to implement and lead an aggressive campaign to initiate new dealerships primarily concentrating in the 11 Western states. This concentration will offer the Company the opportunity to make a strong effort seeking to earn back a portion of the market, which it has lost over the last few years. Among our new General Sales Manager’s responsibilities is to recruit three new experienced [regional] sales representatives to prospect for new dealers in the 11 Western states, service our current dealers, and also supervise our representative in Florida.”
I would like to thank you for your continued support.
June 30, 2004 | December 31, 2003 | ||||||
$ | 332,000 | $ | 1,883,000 | ||||
1,139,000 | 1,332,000 | ||||||
606,000 | 551,000 | ||||||
16,076,000 | 17,848,000 | ||||||
159,000 | 124,000 | ||||||
177,000 | 265,000 | ||||||
$ | 18,489,000 | $ | 22,003,000 | ||||
Property and Equipment at Cost Netof Accumulated Depreciation | 4,274,000 | 4,613,000 | |||||
1,390,000 | 1,189,000 | ||||||
194,000 | 194,000 | ||||||
TOTAL ASSETS | $ | 24,347,000 | $ | 27,999,000 | |||
LIABILITIES & STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts Payable | $ | 1,899,000 | 1,836,000 | ||||
Chassis Vendor Lines of Credit | 2,185,000 | 4,432,000 | |||||
Notes Payable and Current Portion of Long-Term Debt | 54,000 | 54,000 | |||||
Accrued Warranty | 475,000 | 980,000 | |||||
1,732,000 | 1,594,000 | ||||||
397,000 | 384,000 | ||||||
Other Accrued Liabilities | 1,317,000 | 1,102,000 | |||||
276,000 | 280,000 | ||||||
8,335,000 | 10,662,000 | ||||||
909,000 | 942,000 | ||||||
9,244,000 | 11,604,000 | ||||||
— | — | ||||||
5,872,700 at June 30, 2004 | |||||||
5,580,000 | 5,580,000 | ||||||
9,523,000 | 10,815,000 | ||||||
15,103,000 | 16,395,000 | ||||||
$ | 24,347,000 | $ | 27,999,000 | ||||
Six Months Ended | |||||||
June 30, 2004 | June 30, 2003 | ||||||
$ | 9,810,000 | $ | 25,588,000 | ||||
8,880,000 | 19,727,000 | ||||||
$ | 930,000 | $ | 2,861,000 | ||||
Selling, General, Administrative Expensesand Other Expenses | 2,224,000 | 3,416,000 | |||||
(1,294,000 | ) | (555,000 | ) | ||||
2,000 | 217,000 | ||||||
$ | (1,292,000 | ) | $ | (338,000 | ) | ||
$ | (0.22 | ) | $ | (0.06 | ) | ||
Weighted Average Shares OutstandingBasic and Diluted | 5,872,700 | 5,872,700 | |||||
Rexhall Industries, Inc. (www.rexhall.com) designs, manufactures and sells various models of Class A motorhomes used for leisure travel and outdoor activities. Rexhall’s lines of Class A motorhomes are sold through dealer locations across the U.S., Canada and Europe and include RoseAir™, RexAir®, Aerbus™, Vision™ and American Clipper™.
FORWARD-LOOKING STATEMENTS: Statements of our intentions or plans made in this press release are “forward-looking statements” based on assumptions and on facts known to us today and are subject to risks and uncertainties. For example, our plans and efforts regarding Rexhall’s campaign to concentrate on and seek to add new dealers in the 11 Western States are forward looking statements. There can be no assurance that our campaign will be successful, that we will successfully recruit the necessary sales representatives to implement our campaign, that we will add new dealerships or maintain or increase sales from existing dealerships, or that we that we will otherwise maintain or increase revenues. If we fail to add dealers through our planned campaign or if we otherwise fail to increase sales, we will suffer future losses.
For further information regarding risks and uncertainties associated with Rexhall’s business, please refer to the “Management’s Discussion and Analysis of Results of Operations and Financial Condition – Certain Risk Factors That Could Affect Future Results” of Rexhall’s SEC filings, including, but not limited to, its Quarterly Report on Form 10-Q for the six months ended June 30, 2004, copies of which may be requested by contacting Rexhall’s Investor Relations Department either by mail at our corporate headquarters, by telephone at 661-726-0565 or from our website atwww.rexhall.com.